XRP is the native cryptocurrency of the Ripple network, a digital payment protocol designed to enable fast and cost-effective cross-border payments. Developed by Ripple Labs in 2012, XRP plays a critical role in facilitating liquidity for financial institutions and payment providers.
Key Features of XRP:
1. Speed: Transactions on the XRP Ledger settle within 3-5 seconds, significantly faster than traditional banking systems or other cryptocurrencies like Bitcoin or Ethereum.
2. Low Costs: XRP transactions are highly affordable, with fees often measured in fractions of a cent, making it suitable for microtransactions and remittances.
3. Scalability: The XRP Ledger can handle up to 1,500 transactions per second (TPS), surpassing the capacity of many blockchain networks.
4. Energy Efficiency: Unlike Bitcoin and Ethereum (before its upgrade), XRP uses a consensus algorithm instead of proof-of-work, requiring far less energy.
